Cathie Wood warns market correction soon — Price action analysis on S&P 500 [Video]

Ming Jong Tey Independent Analyst

During the interview with Bloomberg on 18 Dec 2020, Cathie Wood, the CEO and CIO of the ARK Invest, warns about the market correction. Let’s analyze S&P 500 with volume spread analysis and Wyckoff method.

Let’s tackle from the price action analysis for S&P 500 to see if we can spot any tell-tale signs about the market correction. If indeed the correction comes, what sort of percentage and the possible target price can we expect for S&P 500? Watch the video below:

Timestamps

1:20 Cathie Wood interview with Bloomberg.
2:21 Price action analysis on S&P 500.
5:40 Overbought from the up channel.
7:30 Acceleration climatic up move.
8:10 Two types of market correction.
10:20 Market correction percentage.
11:35 Target for potential market correction.
12:30 Overbought line.

Watch my market analysis video in the last session if you haven’t in order to better relate to the market recap and the trade review.

Bias — neutral (Day trading); bullish (long term).

Key levels — Resistance: 3800; Support: 3720, 3670–3680.

Potential setup — Look for potential reversal at the key levels.

Author

Ming Jong Tey

Independent Analyst

Ming Jong Tey has been trading since 2008. He started his learning journey from technical analysis (indicators, Fibonacci, etc...) to value investing. Throughout his journey, he develops an interest in price action with chart pattern trading.

GBP/USD bulls seem hesitant as Hormuz ship attack supports safe-haven USD

The GBP/USD pair sticks to a positive bias for the second straight day, albeit it remains below the previous day's swing high and trades just below the 1.3200 mark during the Asian session on Friday. Furthermore, the fundamental backdrop warrants caution before positioning for any meaningful recovery from November 2025 lows, around the 1.3140 region, touched on Wednesday.

EUR/USD softens toward 13‑month low near 1.1350 as rising US PCE inflation lifts US Dollar

The EUR/USD pair loses ground to around 1.1365 during the early Asian trading hours on Friday. The major remains near a 13-month low as market expectations for US interest rate hikes have risen. Traders brace for the release of the Michigan Consumer Sentiment Index report, which will be released later on Friday.

Gold returns to the red near $4,000 as Hormuz risks revive USD demand

Gold drops back to near $4,000 in Asia on Friday as geopolitical risks stemming from an attack on a cargo vessel in the Strait of Hormuz bolster the US Dollar. The commodity remains on track to record losses for the fourth consecutive week.

Bitcoin briefly hits $58K as short-term holder weakness deepens, macro conditions trigger liquidations

Bitcoin fell briefly toward the $58,000 level on Thursday as mounting macroeconomic uncertainty, weakening short-term investor conviction and widespread liquidations intensified selling pressure across crypto.

Micron prints perfect, and now the chart has to answer

Memory’s biggest name just delivered the cleanest quarter of its life, and the most interesting thing about it is that the stock isn’t sure what to do with it. Micron closed out fiscal Q3 with revenue of $41.5 billion, up 346% on the year, a fifth straight record. Gross margin came in at 84.9%, up from 39% the same quarter a year ago. Earnings landed at $25.11 against a Street sitting near $20.49.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.